Missouri Tax Guide 2026

Income tax — narrow brackets, low top rate

Missouri has 9 brackets but all compress into low taxable income — the top 4.7% rate triggers at just $8,968 of MO taxable income for 2026 (after federal AGI starting point, MO modifications, and standard deduction). Phased rate reduction (Mo. Rev. Stat. §143.011, modified by SB 3 of 2022): from 5.4% in 2022 to 4.7% in 2026, with further 0.1% cuts triggered when state revenue surpluses meet specified thresholds. Target floor: 4.5%. Federal income tax deduction (Mo. Rev. Stat. §143.171): high-income Missouri filers may deduct PART of their federal income tax paid — but capped at $5,000 single / $10,000 MFJ, and phased out completely above $200k AGI single / $250k AGI MFJ. So a typical high earner gets little to no benefit. Missouri does NOT conform to QBI §199A — add-back required.

Kansas City and St. Louis earnings tax (1%)

Both Kansas City and St. Louis levy a 1% earnings tax (Mo. Rev. Stat. §92.105 enabling, plus city codes): • Residents: 1% on ALL income (wages, business profits, K-1 income — regardless of where earned) • Non-residents: 1% on income EARNED WITHIN the city limits (wages from a KC employer for work performed in KC; consulting fees billed from a KC office) Key nuance — remote work: pre-2020, non-resident employees of KC/STL employers paid the 1% even when working from home outside the city. Post-pandemic, KC and STL have issued refunds for days worked outside the city by non-resident employees (KC: under City Ord. of 2024 refining the doctrine; STL: settled by litigation 2022–2024). The doctrine continues to evolve — consult a CPA for the current year's protocol. Voter renewal: both cities' earnings taxes require voter renewal every 5 years (Mo. Rev. Stat. §92.115). KC last renewed 2021 (next 2026); STL last renewed 2021 (next 2026). Both expected to renew based on revenue dependence. Filing: KC Form RD-109 (residents) or RD-109NR (non-residents); STL Form E-1 (residents) or E-234 (non-residents). Due April 15.

Sales tax

State rate 4.225%. Local jurisdictions add 0.5%–5.875% — Kansas City combined ~9.6%, St. Louis combined ~9.7%, Springfield ~8.1%, Columbia ~7.975%. Groceries: REDUCED state rate of 1.225% (Mo. Rev. Stat. §144.014). Local rates still apply, so combined typically 5.5%–7% on groceries. Multiple legislative attempts to fully exempt groceries from local sales tax have failed; remains a 2025–2026 policy debate. Economic nexus (Mo. Rev. Stat. §144.605(2)(g), effective Jan 2023 — Missouri was the LAST state to adopt Wayfair): $100,000 in MO sales in prior 12 months (no transaction count). Marketplace facilitator law adopted same time.

PTET (SALT Parity Act)

Missouri's SALT Parity Act (Mo. Rev. Stat. §143.436, enacted 2022, eligible 2022 forward): S-corps and partnerships elect to pay state income tax at the entity level — at the top individual rate (4.7% for 2026). Owners receive a REFUNDABLE Missouri credit equal to their share. Election: filed with Form MO-PTE annually by the original return due date. Election is revocable for the year only if the entity later determines it isn't beneficial (Missouri is more flexible than most PTET states here). Missouri PTET does NOT cover Kansas City or St. Louis earnings tax — those remain at the individual level for residents/workers in those cities. For a KC-based partner: PTET covers the 4.7% state portion; the 1% KC earnings tax is still paid personally on Form RD-109. Federal SALT-cap benefit: 37% × MO-equivalent state liability paid via PTET. For a $400k K-1 partner: PTET $18,800 × 37% federal = $6,956 federal tax savings (modest given Missouri's already-low rate).

Property tax

Statewide average effective ~0.91% — moderate. Jackson County (KC suburbs) ~1.32%, St. Louis County ~1.41%, St. Charles ~1.28%, Greene (Springfield) ~0.93%, Boone (Columbia) ~0.96%. Residential property assessed at 19% of fair market value (Mo. Const. Art. X §4(b)). Personal property (vehicles, boats, business equipment) assessed at 33⅓%. The personal property assessment on vehicles is unique to MO and a few other states — every vehicle owner pays an annual property tax based on a fraction of the vehicle's wholesale value. Senior Property Tax Credit (Mo. Rev. Stat. §137.106, expanded by SB 190 of 2023): counties may freeze property tax bills for 65+ owner-occupants. Implementation varies by county (St. Louis, St. Charles, Jackson have all adopted).

Self-employed considerations

LLC formation: $50 online ($105 paper) via Missouri Secretary of State. No annual report required for LLCs (Missouri is one of a handful of states with no LLC annual filing). No state-mandated paid family leave. Unemployment: 0%–13.2% on first $9,500 wage base. Missouri is administratively simple: no LLC annual fee, no state DI/PFML, low rates, generous federal-tax-deduction (capped) for moderate earners. The 1% KC/STL earnings tax is a meaningful additional cost for city-based self-employed but doesn't extend statewide. For a high-income, non-urban Missouri self-employed worker (Springfield, Branson, Cape Girardeau), combined state burden is among the lower in the Midwest. KC/STL add a meaningful 1% on top.

Worked example: Yara Mensah, Kansas City-based freelance copywriter (single, 2026)

Yara lives in Kansas City and runs a sole proprietorship from her KC home office. 2026 net SE income $145,000.

Federal: SE tax + ordinary federal (skipped here). Missouri state income tax: Federal AGI: $145,000 less ½ SE tax (~$10,250) = $134,750 Less standard deduction $15,000: $119,750 Apply 2026 narrow brackets — top 4.7% on bulk → ~$5,540 MO state tax Less limited federal tax deduction (phased out above $200k for single — at her level partial): ~$5,000 cap → MO tax ~$5,300 Kansas City earnings tax: All income earned in/while resident in KC: $145,000 × 1% = $1,450 (Form RD-109) No PTET (Yara is a sole proprietor — PTET only applies to S-corps and partnerships). No Missouri LLC annual fee. Total MO + KC: ~$6,750 personal income tax. If Yara elects S-corp + LLC structure: Reasonable comp ~$95k W-2 + $50k distribution = $145k Federal SE-tax savings ~$1,800 MO PTET (4.7% on $145k = $6,815 paid at entity level, federally deductible) KC earnings tax: still 1% on all of Yara's income = $1,450 (PTET doesn't cover KC) Net: small federal SE-savings, possibly $300–$600 of net benefit annually. Probably not worth the S-corp complexity unless income grows to $200k+.

Statute references

• State personal income tax — Mo. Rev. Stat. §143.011
• Phased income tax reduction — SB 3 of 2022 modifying §143.011
• Federal income tax deduction — Mo. Rev. Stat. §143.171
• City earnings tax authority — Mo. Rev. Stat. §92.105 et seq.
• City earnings tax voter renewal — Mo. Rev. Stat. §92.115
• SALT Parity Act (PTET) — Mo. Rev. Stat. §143.436
• Sales tax economic nexus — Mo. Rev. Stat. §144.605(2)(g)
• Residential property assessment ratio — Mo. Const. Art. X §4(b)

Related pages

• Multi-State Tax Guide →
• PTET Analyzer →
• State Tax Comparison →